‘Torre de Manila handling sends chilling effect to business community’

Last week, property analysts and architects said the clash of culture and commerce, and the subsequent mediation of legal institutions, does not bode well for the business community, especially if that leads to the delay of the development.

In particular, a property consultant said she is against tearing down the Torre de Manila, currently embroiled in controversy, because it went through the process and got the permits. Another architect added that it is the responsibility of the permit-granting agencies to know of the restrictions imposed on a particular place.

Enrique M. Soriano III, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory, stressed: “Faithful compliance to the legal and regulatory process is key. The law is prospective, and therefore, if there is a need to modify the current zoning regulations, then lawmakers must focus on initiating corrective actions and cure the defect, if there is any. The worst thing that governments do is to initiate changes midstream, oftentimes due to public pressure or just plain grandstanding.”

Continuity and respect for law

Soriano recalled an instance during a real estate talk he recently delivered overseas when an audience member—apparently representing investors—raised the issue of continuity and respect for the law in the Torre de Manila case.

Soriano said: “The audience member said that modifying regulations whimsically can send shivers down the spine of the business community, especially to overseas investors. Finally, businesses thrive in an environment that respects contractual obligations. So, unless government stakeholders get their act together, we cannot expect business to thrive. The power of government is to regulate and promote fair play so business can continue to invest.”

Claro dG. Cordero Jr., Jones Lang LaSalle Philippines associate director and head of research, consulting and valuation, added that the country needs to be “more forward-looking” in terms of solving this particular problem.

“One good way to aim for a better solution is to create a higher body/government branch that will oversee the individual land use and zoning regulations of all local governments,” he said.

Cordero added that the local zoning regulations should also be subject to stricter measures and remedies (and should not rest on the LGUs alone) prior to any amendments or accommodation.

He said: “The suggested branch of the government to enforce these measures, should ensure that the land use and zoning regulations in the country protect and enrich the historical/heritage sites, and at the same time, adapt to the evolving demand for and trends in property developments. This way, the investors will be subject to fair rules and regulations while the character and history of the area is well-preserved, enhancing further the interest of other investors.”

Monique Cornelio-Pronove, chief executive officer of Pronove Tai International Property Consultants, added: “We are very big in rules and processes. Here is a developer that followed them. What do we do? We shoot it down despite the fact that the National Historical Commission of the Philippines (NHCP) issued it a clearance, the Housing and Land Use Regulatory Board issued a permit to sell, and the local government issued the building permit.”

Rules of the game

Pronove said “the rules of the game should never be changed midstream,” adding that the Torre development is already “way beyond midstream, it is 85-percent complete.”

Pronove, who attended the four-and-a-half-hour oral argument at the Supreme Court on Torre de Manila case last Aug. 4, observed that the “whole thing was very disconcerting, which shouted ‘the Philippines is closed for business.’”

According to her, the statement of Associate Justice Francis Jardeleza “was very scary, especially when he repeatedly stressed on business risks.” “All businesses take ‘calculated’ risks, and for us, when permits and clearances are released, it is a vote of confidence and an approval to proceed. By the very term ‘permit and clearance’ what else could businesses rely on to ensure certainty in business but those documents. Even the NHCP clearance issued by its chair (Maria Serena I. Diokno) is being questioned. Is she not empowered?”

Pronove said: “It does not speak well of us as Filipinos and as a nation when we rule ourselves in chaos. It is very embarrassing to bring this issue up to International Council on Monuments and Sites and get them involved because this is of our own doing. Government permitting bodies who issued the permits should stand pat on their decisions.”